Comment on Trump tariffs result in 10% laptop price hike in U.S. says Acer CEO
bravesilvernest@lemmy.ml 3 days agoIt’s similar to how “Covid caused us to raise prices!” Sure, initially it would have, but then they saw that watermark and kept bumping it higher, all the while blaming supply chains.
Fast forward to now: Covid is “over,” yet somehow all my groceries still cost much more.
tal@lemmy.today 3 days ago
Inflation from the period during COVID-19 did go down. That does not mean that prices will return to a pre-COVID-19 point. Inflation is the rate of increase in prices, not prices. The government will actively aim to avoid deflation via adjusting interest rates, because deflation creates problems. What you saw during COVID-19 was the rate of price increases being higher than the rate of wage increases for several years, and what you saw subsequent to that was the rate of wage increases being higher than prices.
www.statista.com/…/wage-growth-vs-inflation-us/
neon_nova@lemmy.dbzer0.com 3 days ago
I think what he is referring to is reports that companies were raising prices higher than the rate of inflation as a way to increase profits. They would then blame inflation even though inflation was lower than the rate that they raised prices.
balder1991@lemmy.world 3 days ago
But what you say depends on what’s causing such prices to rise, isn’t it?
Let’s say that suddenly the production of product X halts and the prices rise. You’d expect that once you start producing it en masse again, prices of that product would at least fall. But what we see in most of the world is that products didn’t get cheaper, arguably because of the phenomenon of price stickiness.